Remain invested in Cairn India: SP Tulsian

SP Tulsian, sptulsian.com is of the view that one can remain invested in Cairn India with a target of Rs 330.

Tulsian told CNBC-TV18, “All the positive news has started coming in from Cairn India. If you see they have started the production from their Aishwarya oil field also and planning to ramp it up to about 10,000 barrel per day in a very short time. They have started selling the gas also 5 million standard cubic feet (mscf) of the gas is also started getting sold and eventually they are targeting for a production of 5 lakh barrel per day in few years which will be much more than what is being produced now by Oil and Natural Gas Corporation (ONGC).”
“So, since you have one year horizon you are in the right stock. Right now the stock is ruling at about maybe Rs 280 or so but I will advice you to remain invested maybe one year target can be taken at Rs 330. If you want to churn your portfolio maybe or make a trading on that you can look to exit at Rs 310 which will be slightly above your cost which is at Rs 306 and can again look to enter into the stock at a lower level.”
”So, by doing this two to three times trading of maybe Rs 5 or so you can bring down your cost otherwise also. So, if you are a passive investor remain invested with one year view or if you are a short-term investor look to exit at Rs 310 and again look to enter maybe sub Rs 300 level or so.”